What type of markdown is necessary for poorly moving keystone items?

For poorly moving keystone items, clearance and liquidation markdowns are essential strategies to encourage sales and reduce inventory. Keystone items are typically priced at double the cost to create a standard markup. However, if these items are not selling as anticipated, it becomes necessary to implement more aggressive markdowns to clear out stocks.

Clearance markdowns are typically utilized to sell through excess inventory quickly, especially when items are at risk of becoming obsolete or out of season. Liquidations focus on selling remaining stock, often at significantly reduced prices, to recover capital. Thus, these markdowns are effective in creating urgency and attracting cost-conscious customers who may not have purchased the items at regular price.

This approach contrasts with seasonal markdowns, which are usually implemented in anticipation of changing inventory needs or to make way for new products, and standard promotional discounts, more focused on attracting customers without the immediacy of clearing out slower-moving items. Wholesale pricing adjustments involve changing pricing strategies to vendors but do not directly address the need to move existing inventory effectively.